BURNABY, BC, Nov. 8, 2018 /CNW/ - Taiga Building Products
Ltd. ("Taiga" or the "Company") (TSX: TBL) today reported its
financial results for the three and nine months ended September 30, 2018.
Third Quarter Ended September 30,
2018 Earnings
Results
Sales for the third quarter increased to $399.6 million from $396.6
million in the same quarter last year.
Gross margin dollars for the third quarter decreased
$9.9 million or 26% to $27.9 million compared to $37.8 million in the same quarter last
year. Gross margin percentage for the third quarter was 7.0%
compared to 9.5% in the same quarter last year. The decrease in
gross margin percentage was primarily due to falling commodity
prices in the current quarter compared to the same quarter last
year.
Net earnings for the quarter decreased to $5.6 million from $6.0
million in the same quarter last year primarily due to
decreased gross margin dollars.
EBITDA for the quarter ended September
30, 2018 was $9.2 million
compared to $16.2 million for the
same period last year.
Nine Months Ended September 30,
2018 Earnings Results
Sales increased to $1,147.1
million for the nine months ended September 30, 2018 compared to $1,062.4 million for the nine months ended
September 30, 2017.
Gross margin dollars for the nine months ended September 30, 2018 increased to $98.0 million from $95.7
million over the same period last year. Gross margin
percentage for the nine months ended September 30, 2018 decreased to 8.5% from 9.0%
for the same period last year.
Net earnings for the nine months ended September 30, 2018 were $18.7 million compared to $11.3 million for the same period last year.
EBITDA for the nine months ended September 30, 2018 decreased to $36.9 million compared to $38.3 million for the same period last year.
Condensed Consolidated Statement of
Earnings
For the Three Months Ended
|
September
30,
|
(in thousands of
Canadian dollars, except for per share amounts)
|
2018
|
2017
|
Sales
|
399,634
|
396,629
|
Gross
margin
|
27,857
|
37,821
|
Distribution
expense
|
6,817
|
5,781
|
Selling and
administration expense
|
13,520
|
17,042
|
Finance
expense
|
2,091
|
1,574
|
Subordinated debt
interest expense
|
219
|
4,509
|
Other
income
|
(96)
|
(146)
|
Earnings before
income taxes
|
5,306
|
9,061
|
Income tax expense
(recovery)
|
(273)
|
3,081
|
Net
earnings
|
5,579
|
5,980
|
Net earnings per
share(1)
|
0.05
|
0.18
|
EBITDA(2)
|
9,228
|
16,242
|
The following is the reconciliation of net earnings to
EBITDA:
|
September
30,
|
(in thousands of
Canadian dollars)
|
2018
|
2017
|
Net
earnings
|
5,579
|
5,980
|
Income tax
expense
|
(273)
|
3,081
|
Finance and
subordinated debt interest expense
|
2,310
|
6,083
|
Amortization
|
1,612
|
1,098
|
EBITDA
|
9,228
|
16,242
|
For the Nine Months Ended
|
September
30,
|
(in thousands of
Canadian dollars, except for per share amounts)
|
2018
|
2017
|
Sales
|
1,147,106
|
1,062,442
|
Gross
margin
|
98,043
|
95,662
|
Distribution
expense
|
18,712
|
16,981
|
Selling and
administration expense
|
46,658
|
44,167
|
Finance
expense
|
5,106
|
4,460
|
Subordinated debt
interest expense
|
618
|
13,528
|
Other
income
|
(296)
|
(471)
|
Earnings before
income taxes
|
27,245
|
16,997
|
Income tax
expense
|
8,518
|
5,739
|
Net
earnings
|
18,727
|
11,258
|
Net earnings per
share(1)
|
0.16
|
0.10
|
EBITDA(2)
|
36,875
|
38,306
|
The following is the reconciliation of net earnings to
EBITDA:
|
September
30,
|
(in thousands of
Canadian dollars)
|
2018
|
2017
|
Net
earnings
|
18,727
|
11,258
|
Income tax
expense
|
8,518
|
5,739
|
Finance and
subordinated debt interest expense
|
5,724
|
17,988
|
Amortization
|
3,906
|
3,321
|
EBITDA
|
36,875
|
38,306
|
Notes:
|
(1) Earnings per
share is calculated using the weighted average number of
shares.
|
(2) Reference is made
above to EBITDA, which represents earnings before interest, taxes,
and amortization. As there is no generally accepted method of
calculating EBITDA, the measure as calculated by Taiga might not be
comparable to similarly titled measures reported by other issuers.
EBITDA is presented as management believes it is a useful indicator
of a company's ability to meet debt service and capital expenditure
requirements and because management interprets trends in EBITDA as
an indicator of relative operating performance. EBITDA should not
be considered by an investor as an alternative to net income or
cash flows as determined in accordance with IFRS.
|
The foregoing selected financial information is qualified in its
entirety by and should be read in conjunction with, our unaudited
condensed interim consolidated financial statements for the three
and nine months ended September 30,
2018 and accompanying notes and management's discussion and
analysis which will be available shortly on SEDAR at
www.sedar.com.
SOURCE Taiga Building Products Ltd.